THRC Ltd

Professional People Practice
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Taking on staff

 

Recruitment is an expensive and time consuming process, getting the right person can make a positive difference to you and to your business, but if you get it wrong it can be at best an expensive mistake and at worst and unmitigated disaster.  

 

Whether you are a sole trader looking to take on your first employee or,  an established business looking to find a new employee to replace someone who has left, taking time to think about whether you really need to take on staff can save money and minimise problems.

 

So before forging ahead take time out to think about the following:

 

1. What do you want them to do and why do you want them to do it?

 

If it's the case that you've too much work on think specifically about:

  • what do you want them to do (be as specific as possible)
  • what will you (or others) stop doing, and why
  • where will you focus your time, or
  • are you replicating an existing product or service
  • what does this leave to be done by you (others)

 

Also think about whether

  • there is a better way of doing things
  • you can change the way you do things? 
  •  you can use different processes, technology or outsource some of your non-core activities etc.

 

2. Is this a meaningful role for someone and is there enough of it for them to do?

Once you know what you want them to do, you need to think about whether this is a 'proper' job, or a strange collection of odd things that don't really sit together.

 

  • different types of jobs often require different skill sets and / or personality traits e.g. financial admin often needs something different to sales admin, are the skills you're looking for compatible.

 

Remember most people are happiest, do their work more effectively and are more willing to go the extra mile when:

  • the job makes sense
  • they can see that their expertise is being usefully employed,
  • the work they do is useful, they are contributing to success and
  • they feel valued,  
  • they have some control over what they do, and also how and, to some extent when, ithey do it.
  • they get something, besides pay, from the job (experience, training, responsibility etc.)
  • do you need someone full time, part time, just occasionally.

 

3.  Can you afford an employee

It's not just salary, tax and NI that you need to think about:

  • All employees are legally entitled to 25 days (including public holidays) paid holiday each year.
  • How much time can you afford to put into managing and (if necessary) training them.
  • Have you got appropriate business systems in place to ensure that they can be productive from day 1 (or are you looking for a fairy godmother or mind reader?).
  • What is your order book like, have you got enough work for the foreseeable future?
  • What happens if you lose an order or a client?
  • Client expectations, especially if you provide services to clients on a 1:1 basis (e.g. accountants, other business consultants)

 

4. How much will you need to pay

The short answer is enough to get you the right person, this is not necessarily the same as what you can afford.   The latter is determined by your knowledge of your forward order book, existing business overheads, profitability etc.  To find out the going rate for the job you have to offer :

 

  • go online to job search sites. Check out similar sounding roles in your area, what salaries and benefits are being offered.
  • Some job search sites have an electronic salary checker.
  • Ask your contacts and even speak to agencies.
  • Take care not to under or over pay, both options can cause problems. 

 

5. What else?

 

I've already mentioned paid holidays, there are a few other things to think about before  you finally decide to take on an employee. 

 

Unless you are a natural people manager, it's helpul to have a framework of people management procedures in place, rather than making it up as you go along and perhaps having to back track on some of your decisions.

 

These include:

 

  • How to book holiday
  • What to do if off sick
  • What to do if they need to go to GP, dentist etc
  • What time off is paid and what is unpaid
  • What is classed as a reasonable business expense
  • How are expenses claimed and paid
  • Disciplinary & grievance procedure
  • Dress code
  • Company cars

 

You will also need a suitable contract of employment.

 

6. Consider everything you have just thought through and then ask yourself.......

 

  • are you a good people manager? 
  • Can you communicate your expectations clearly?
  • Is there any other way I can source the skills, knowledge and expertise my business needs, and
  • if so how much does it cost and
  • what are the risks for my business of doing it this way?

 

Analyse your answers and it should become apparent whether recruiting an employee is the right answer for you and your business at this point in time.